Following the news that Canada has selected Saab and Lockheed Martin as finalists in its Future Fighter Capability Project (FFCP) competition; William Davies, Aerospace & Defense Analyst at GlobalData, a leading data and analytics company, offers his view.
“Canada received three bids for the FFCP in 2020, but in a surprising twist has removed Boeing from consideration at this latest stage. The country’s close relationship with the US meant that either the Super Hornet or the F-35A were favored – but the removal of Boeing increases Saab’s choice of selection with its Gripen E.
“Boeing and Canada have a checkered history, with the company filing a lawsuit against Canada’s Bombardier in 2020 over the sale of its C series (now Airbus’s A220) aircraft to Delta airlines, alleging that it was only possible for them to win the contract because of Canadian government subsidies.
“Boeing must be gutted – it put significant effort into promoting the Super Hornet to Canada, including promising work and funding to companies in every Canadian province. Meeting Industrial and Technological Benefits obligations (ITB) is key to securing contracts in Canada, with Boeing’s promise of potentially 250,000 jobs the company was expected to make the final stage of decisions.
“Canada’s alternative options for the contract, Lockheed Martin’s F-35A and Saab’s Gripen E, must both prove that they would provide significant economic benefits to be selected – especially considering that the program costs are estimated to be a pricey $14.8 billion.”